I don`t know what else to do!
December 14th, 2007 by Questions
I am a 24 year old student in college in Ontario. I got involved in a property in January of this year and everything is falling apart.
The mortgage is $177,000, and the house is only worth $125,000 (according to the latest city appraisal). Everything in the house is falling apart, the sewage pipe has exploded twice, two fridges and a stove needed to be replaced, the electricity is not up to standard, etc, etc.
I do not live in the property (which is a 3 unit house) but have it fully tenanted. I haven`t been able to pay the mortgage because I`ve been using rent money for repairs, and to keep heat, hydro, and water in the house. The insurance was recently cut off, and the house is about to be foreclosed on.
Let me backstep a little – When the property was purchased I was working with 2 guys in the `mortgage business`. They asked me to put this house on my credit, and they would renovate it and sell it. They said they do this all the time… and I would recieve $5000 for allowing them to use my SIN. My credit would also go up because I would have owned and sold a house.
They never made any mortgage payments, even though they were collecting rent from the tenants. After 6 months I told them to stay out of the whole thing because they weren`t paying any bills (which was previously agreed they would) and I was being harassed by the mortgage company.
For the first little while everything was okay, but the house kept falling apart and I can`t afford to safely keep tenants in there. I am currently working with my lawyer to file a lawsuit against them because without my knowledge, they committed mortgage fraud.
I think bankruptcy is my only option. I have other outstanding debts of $17,000 and haven`t been making payments on them for the last few months because I am absolutely drowning in bills, and am thinking I will indefinately have to file for bankruptcy.
I am finishing my last semester of college and really need my OSAP installment in January in order to live and maintain my 80+ average, and have been holding off making any major moves regarding filing bankruptcy because I`m afraid it will make me ineligable.
I`m wondering if I can start the process now because the guilt of not being able to pay is making it difficult for me to sleep at night. I don`t even have a ringer on my phone because it`s usually one creditor or another calling me and I don`t have the nerve to face them.